Look at the following discussion topic and answer the related questions:

Topic

Dibimilano (http://www.dibimilano.it/) is one of the brands of the company Alfaparf Group. (http://www.alfaparfgroup.com/) They have a presence in many markets / Europe, North America, Brazil, Russia, China and they have recently established a regional office for the Gulf Area in Dubai in the UAE. Their biggest market, though, in this area is Saudi Arabia and the company is coming under pressure from the Saudi Ministry of Trade to relocate its Gulf office to Riyadh.

Question 1

Identify the economic indicators you consider would be of most relevance to the company in making a decision like this and use them to compare the two economies. (Related to the first evaluation criteria - see table below)

Question 2

Consider the political stability of both countries - what factors contribute to its stability/volatility?(Related to the second evaluation criteria - see table below)

Question 3

Analyse the market for beauty treatments in the two countries and compare the needs of the women for dibimilano products and services. (Related to the third evaluation criteria - see table below)

Question 4

On the basis of your analysis, recommend whether dibimilano should maintain their headquarters in Dubai, move them to Riyadh or look for another alternative. Remember to support your conclusions with your previous analysis.

It assesses the following learning outcomes:

• Critically examine economic principles used in managerial situations. Topics: global interdependence and the benefits of trade and the impact of exchange rates.
• Evaluate, analyze and contrast economic decisions and their impact of the global business context.